September 28, 2023

Markets:

S&P 500 futures edged slightly higher on Thursday as investors readied for the final trading days of what’s shaping up to be a weak month and quarter.

The yield on the benchmark U.S. 10-year Treasury hit a fresh 15-year high this morning, climbing above levels last seen in 2007. The 2-year Treasury
yield was little changed.

Friday marks the end of what has been a tough trading month and quarter. As of Wednesday’s close, the Dow is poised to end 3.4% down on the month and 2.5% lower in the quarter. The S&P 500 is slated to finish the month down 5.2% and the quarter off by about 4%. The Nasdaq is on pace to finish the month and quarter losing 6.7% and 5%, respectively.

Investors will watch for economic data on jobless claims, home sales and the GDP on Thursday, before turning attention to the latest personal consumption expenditures price index reading due Friday. The PCE reading is the Federal Reserve’s preferred inflation metric.

Wall Street is also keeping an eye on Washington, as lawmaker negotiations on a U.S. spending bill continue. Without an agreement by this weekend, the government would shut down.

Portfolio:

Today's session begins with positions in GEO, SOXL, KOS, AX, CHWY, CLF, and ATEN. As we've emphasized throughout this week, we are navigating the market with the month-end and quarter-end trading dynamics in mind. Today is a typical "steer the cattle/sheep," with a notable presence of Federal Reserve speakers, some of whom will be featured on CNBC. Anticipate market fluctuations as these speakers take the stage, a trend that commenced this morning and will persist until approximately 2 pm.

Yesterday's trading was characterized by mechanical movements, and we look forward to tomorrow's final trading session of this quarter, ushering in a promising period next week. Stay prepared and maintain a heightened state of alertness as we await new trade opportunities to trigger.